Historic, archived document
Do not assume content reflects current
scientific knowledge, policies, or practices.
United States
Department of r
Agriculture *-*»p ,'^
Foreign
Agricultural
Service
FAS M-294
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Mexico's Expanding
Olive Industry
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Some Key Data on Mexico
People
Population: 70 million.
Geographic distribution: 60 percent urban, 40 percent rural.
Ethnic distribution: 60 percent Indian-Spanish (Mestizo), 30 percent
American Indian, 9 percent Caucasian.
Mexico City's population: 13 million, including Federal District
(world's largest city).
Education: Compulsory for 9 years. Literacy rate, 75 percent.
Economy
Gross domestic product: $74.3 billion (1977).
Inflation rate: 17 percent (1978), 18 percent (1977), 29 percent
(1976).
Unemployment rate: 19 percent (1978), 20 percent (1977), 25
percent (1976).
Employment: 20 million, with 800,000 entrants annually. |
Exports: $5.8 billion (f.o.b.) in 1978; $3.4 billion to U.S.; $1 billion
in agricultural items.
Imports: $7.2 billion (c.i.f.) in 1978; $4.5 bUlion from United
States; $900 million in agricultural items.
Agriculture
Total land area: 1 97 million hectares.
Forests: 73 million hectares (37 percent).
Pasture: 68 million hectares (35 percent).
Mountains and deserts: 28 million hectares (14 percent).
Crop area: 28 million hectares (14 percent).
Irrigated area: 5 million hectares (3 percent).
Leading crops in 1978 (hectares): Corn (8.1 million), dry beans (2
million), sorghum (1.1 million), wheat (850,000), sugarcane
(445,000), safflower (370,000), cotton (354,000), coffee
(320,000), barley (240,000), sesameseed (240,000).
Leading fruits and vegetables in 1978 (hectares): Oranges (168,000),
tomatoes (71,000), potatoes (58,000), peppers (54,000), bananas
(50,000), limes (44,000), grapes (40,000), watermelons (24,000),
cantaloupes (23,000), onions (20,000), and olives (5,000).
Front cover: Harvesting olives in Baja California.
NEW MEXICO
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Foreword
Mexico's olive industry is expanding at a rapid pace, spurred by accelerating production
of table olives in the northwestern states of Sonora and Baja California. Growers in these
states are increasing plantings and expanding processing capacity at an unprecedented
rate.
Surplus production for export is developing, and, in years of U.S. crop shortfalls, some
U.S. processors and distributors are importing table olives from Mexico to maintain their
market outlets. As Mexico's olive industry expands, both raw and processed olive
products will be exported.
Presently, most of Mexico's foreign trade in olives consists of shipments along the
western U.S. -Mexican border. However, as Mexico's production mounts, the outlook for
the 1980's and 1990's is for a sharp rise in exports of table olives and olive oil to the
United States and Canada.
The purpose of this report is to describe Mexico's olive industry and the factors
underlying its impact on the U.S. olive industry. The author is indebted to numerous
Government and industry officials for information and assistance. Special appreciation is
extended to David I. Rosenbloom, Assistant U.S. Agricultural Attache, Mexico City;
James H. Baldas, District Director, USDA's Animal and Plant Health Inspection Service,
Plant Protection and Quarantine, Tijuana, Mexico; and Lie. Sergio Miranda Sotelo,
Economic Officer, U.S. Consulate, Hermosillo, Mexico, for accompanying the author on
his survey and providing information for this report.
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Gilbert E. Sindelar
Director, Horticultural and Tropical Products Division,
Commodity Programs,
Foreign Agricultural Service
April 1980
Contents
Page
Summary 1
Introduction 1
Area and Varieties 2
Yields 2
Cultural Practices 3
Harvesting 4
Production 4
Processing 4
Marketing 5
Foreign Trade 6
Outlook 6
Tables 7
Mexico's Expanding Olive Industry
By L.P. Bill Emerson, Jr.
Horticultural and Tropical Products Division, Commodity Programs, FAS
Summary
Mexico is expanding its olive industry substanti-
ally, and may become a major world producer and
exporter of table olives and olive oil sometime in the
1980's and continuing into the 1990's.
Major factors in the industry's expansion program
include large-scale plantings of olive trees (particu-
larly in desert areas of Baja California and Sonora),
construction of new processing plants, and enlarge-
ment of existing processing facilities.
Although Mexico has never been a significant
supplier of table olives and olive oil to the United
States, producers plan to export a substantial share of
their enlarged output to this market in 5-10 years,
displacing a significant share of U.S. imports of table
olives and olive oil from Spain and Italy. Production
facilities for this purpose are being extensively up-
graded.
The United States is a net importer of table olives
and ohve oil. In 1979, 36,926 metric tons* of table
olives and 27,306 tons of oil, valued at $76 million
and $45 million, respectively, were imported. Spain
supplies over 80 percent of U.S. imports of table
olives, the bulk of which are in the form of so-called
"Spanish olives"— brined green fruit, often pitted and
stuffed with pimentos. Italy and Spain supply 50 and
40 percent, respectively, of U.S. olive oil imports.
Introduction
Olives are well adapted to the arid climate of
northern Mexico and have been grown there for more
than 450 years. They were introduced to the country
by Franciscan and Jesuit missionaries shortly after
the conquest by Cortes. Missionaries brought olive
seeds and cuttings from Spain and developed into
what has become known as the Mission variety (Oleo
europaea, var. Mission) that was planted throughout
Mexico.
The first plantings are attributed to Brother Martin
de Valencia, who in 1524 planted some trees near
Mexico City. Some of these trees are still producing
olives. Later, commercial olive groves were estab-
hshed in the states of Guanajuato and Michoacan,
particularly in the Apatzingan area. During the ensu-
ing two and a half centuries, olive production rose to
a point where it fulfilled domestic demand for olive
'Note: All tons are metric unless otherwise specified.
oil and permitted shipments to other Spanish colo-
nies-in competition with Spain's olive oil shipments.
This competition had become so important by
1774 that King Carlos III of Spain issued an order
prohibiting further plantings of olive trees in Mexico.
However, competition from existing ohve growers
continued, and in 1777 Carlos issued a decree order-
ing destruction of all olive groves except those of
church property, thus ending Mexico's first com-
mercial olive industry.
Today, the Mexican olive industry is centered in
Baja California and the neighboring state of Sonora.
Olive groves in this region owe their origin to Father
Eusebio Francisco Kino, a legendary Jesuit who
founded many missions in Mexico's Pacific Northwest
during the 17th century. Under his leadership, cattle
ranching and grain farming were started, while Mis-
sion olives (and Mission variety wine grapes) were
planted to produce olive oil. Many of these original
Mission trees are still producing, particularly in Baja
California.
In 1769, during an expedition by Don Joseph de
Galvez to rediscover the port of Monterrey, Fran-
ciscan priests brought olive seeds and cuttings to the
San Diego Mission from San Bias, Nayarit. This
proved to be the origin of the present-day olive
industry in California.
Olives are virtually the only commercial crop that
will grow without irrigation in the deserts of Sonora
and Baja California (although most olive groves are
irrigated to produce larger sized fruit). The olive areas
in northern Sonora— around the cities of Caborca and
Hermosillo -receive only 100-200 millimeters (4-8
inches) of annual rainfall. Baja California's olive
area— principally along the northern Pacific coast— has
an average of 200-300 millimeters (8-12 inches) of
annual precipitation.
Sonora's rainfall usually arrives during July and
August, while Baja California's rainy season is from
December through March. Sonora has light frosts in
the winter and extremely hot summers, while Baja
California's coastal areas have moderate temperatures
year-round.
Adverse weather-particularly in Baja California-is
a significant production problem. Lack of rainfall and
warm winters frequently cut crop yield* to half of
normal levels in Baja California. For this reason, olive
production is shifting to Sonora and to cooler parts
of Baja California, where irrigation water is available
and winter temperatures are below 10 C (50 F),
which is necessary for olive trees to form flowers.
Area and Varieties
Approximately 95 percent of Mexico's olive area is
centered in Baja California and Sonora. Baja Cali-
fornia has approximately 5,000 hectares of bearing
olive groves and another 1,000-2,000 of nonbearing
trees. Sonora has 2,000 hectares planted but only
about 400 hectares of fruit-bearing trees. Other minor
production zones are in the States of Durango,
Guanajuato, and Aquascalientes.
Planted area in Baja California expanded at an
average 100 hectares annually during 1975-79, while
Sonora's annual plantings were 300-500 hectares.^ If
these planting rates continue as expected, Mexico's
olive producing area will exceed that in the United
States in 10-20 years.
Because Baja California's coastal valleys frequently
have warm winter weather— which dramatically re-
duces olive production— new plantings there have
been in the cooler inland areas. Sonora's new plant-
ings are in new irrigation areas, primarily around
Caborca.
Today, table olive varieties planted in Mexico
follow the same pattern as those of Southern Cali-
fornia. Until the Mexican Revolution of 1910-20, the
Mission olive was the predominant type planted in
that country for table use and oil extraction. Al-
though the Mission variety continues to be the best
variety for oil extraction and continues to be grown
in Baja California primarily for this purpose, it has
been largely replaced as a table olive variety because
of its small-sized fruit.
Since the 1920's, plantings have been primarily of
the Manzanillo variety, although there have been
some trial plantings of other varieties. Manzanillo
fruits are larger than Missions and have a much higher
flesh-to-pit ratio; moreover, they are easily processed
and have an oil content high enough to warrant
extraction from small, frozen, or culled fruits.
During the late 1960's, commercial plantings of
Sevillanos (Queens, or Gordales) started because of
the substantial premiums paid by processors for these
very large fruits.
Later, however, Mexican processors found this
variety more difficult to process, and its fruit quality
was often somewhat lower than that of the Mission
and Manzanillo varieties (although with proper treat-
ment a satisfactory table olive product can be ob-
tained). Also, the yields are generally lower than
those of the other varieties, and the oil content is not
high enough to justify oil extraction.
For these reasons, area devoted to Sevillano is
relatively small compared wdth that of Manzanillos,
with plantings located only near a few processors in
Baja California that produce large-size, specialty type
olives— Mammoth, Giant, Jumbo, Colossal, or Super-
Colossal grade sizes.
^The removal of old olive trees offsets some of these area
increases in Baja California.
The two other principal table varieties grown in
California— Ascalano and Barouni— are not com-
mercially grown in Mexico. The Barouni variety,
grown primarily in northern California, does not yield
well in Mexico because of the hot cUmate, while the
Ascalano has very tender fruit that is easily bruised
and not suited to green pickling for Spanish-type
olives because of salt-shrivel during fermentation.
During the 1980's, the Manzanillo variety will
continue to account for the bulk of the new plant-
ings. Sevillano plantings may also increase as demand
for large-size table olives rises. However, processors
are more interested in obtaining new varieties that are
suitable for both table and oil use and that grow well
with minimal irrigation.
Olive trees are generally planted on the square
system, with rows at 90-degree angles and trees-
averaging 10 meters apart-planted 100 per hectare.
Earlier plantings were 6-8 meters between trees, but
this was much too close and yields from these trees
declined rapidly because of shading on bearing sur-
faces and root competition. Standard planting dis-
tances vary from 9 to 1 2 meters between trees, with
Manzanillo trees planted the closest together. Mis-
sions and Sevillanos are spaced further apart.
Plantings are also made in accordance with the
type of irrigation used. Many of Sonora's plantings
are in 10-by-lO -meter squares with raised contour
levees so that each tree can be flood-irrigated with
minimal water loss. With the furrow system of irriga-
tion, the channels are laid out before planting the
trees. However, when the drip irrigation system or the
movable, drag hose line system (sprinkler head irriga-
tion method) are utilized, the groves are generally
planted first and the watering system installed after-
ward.
Yields
Until 1977, yields generally were highest in the
large olive groves of northern Baja California. How-
ever, yields in Sonora increased sharply in 1 978 and
1979 as bearing trees 20-30 years of age came into
full production and intensive cultural practices began
to pay dividends.
Baja California's bearing trees range in age from 10
to 400 years, but most are 30 to 50 years old-the
optimal bearing age if trees are well maintained. Some
Mission orchards 200 to 400 years old still bear
above-average crops, particularly in years of heavy
rainfall or where frequent irrigation is available. At
the Baja CaHfornia Mission de Santo Thomas (where
all trees are under constant ditch irrigation from local
springs), 300-year-old trees average 120 kilograms
(250 pounds) of olives per tree, compared with 45
kilograms (100 pounds) for 20-year-old trees.
In years with favorable weather, such as in 1971,
Baja California's overall yields have averaged 40 kilo-
grams per tree, or 3.2 tons per hectare. However,
during 1973-76 period, warm winters and below-
average rainfall resulted in yields of only about 1.5
tons per hectare, or 14 kilograms per tree. Neverthe-
less, many orchards in Baja California are approaching
an optimal bearing age of 30-50 years and heavy
rainfall and favorable temperatures in 1979 caused
yields to revive to at least 20 kUograms per tree, or
over 2 tons per hectare.
In Sonora, yields are also advancing with the
increase in age of the olive groves and now are the
highest in Mexico. During the 1 960's, production per
tree averaged only 5 kilograms, but average yields
now exceed 80 kilograms per tree. Sonora's yields
jumped from 1 to 8 tons per hectare in 1977 as the
new orchards came into full production and advanced
technology imported from the United States was
utilized. In well-maintained older olive areas, yields
are about 100 kilograms per tree, or 10 tons per
hectare (4 tons per acre), which is near average yields
in the United States.
Sonora's yields now are about four times higher
than Baja California's yields— a result of the adoption
of U.S. production practices in Sonora-while Baja
California continues to use less efficient cultural
practices. Although Sonora's yields are now 8-9 tons
per hectare (about 3,5 tons per acre), this is still well
below California's 10-20 ton yields. Sonora's growers
expect average yields to continue rising and reach
U.S. levels by 1990 as their trees reach mature age.
Cultural Practices
Cultural practices are often the most important
factor affecting production— particularly in Sonora,
where intensive use of U.S. technology boosts yields
substantially. Irrigation, fertilization, cultivation,
pruning, fruit thinning, and spraying practices have an
important impact on crop production, along with
rainfall patterns, winter temperatures, and the natural
tendency of olive trees to bear alternatively heavy
and light crops.
The timing and amount of irrigation water used is
critical in producing a crop of large-size olives for
table use. In Baja California, orchards are generally
irrigated by ditch flood, fixed high-volume sprinkler
heads, or low-volume, movable drag hose lines.
Irrigation in Baja California (using any of these
methods) generally is performed two to four times
annually, with younger trees receiving additional
waterings. However, most of Baja California's trees
are on dryland farms, which often accounts for the
low yields in this region.
Olive groves in Sonora are usually irrigated from
four to eight times annually, using flood irrigation
with contour levees, or with ditch irrigation. Older
olive groves are flooded four times a year, twice in
the spring, and twice in the early fall, while younger
trees are irrigated about eight times a year to pro-
mote plant growth.
Drip irrigation- the most efficient water usage
system -is increasing in use because of the rising cost
of obtaining irrigation water. Drip waterings are
applied one to five times monthly— depending on the
weather, phase of the growing season, and age of the
trees.
Total water usage in Sonora's olive orchards is
generally 3,500-4,500 cubic meters (2.5-3 acre-feet)
per hectare annually, while in Baja California, water
usage varies widely, generally from zero to 3,500
cubic meters (zero-2.5 acre-feet) per hectare.
Water may cost $80-$ 100 per hectare ($30-$40
per acre) if it is obtained from the Mexican Govern-
ment, although most irrigation water comes from
private wells. A deep weU costs about $20,000 to drill
and the equipment may last 10 to 20 years. These
wells irrigate 50-100 hectares under drip irrigation,
but only 30-50 hectares under ditch or flood irriga-
tion.
Cultivation practices usually entail the disking in of
winter weeds, floating or harrowing, and furrow-
ing-out after every second or third irrigation during
the summer. The soil is disked and floated prior to
spraying or harvesting if the weed cover interferes
with these operations. Disking and harrowing costs
are roughly $30 and $20 per hectare, respectively,
with tractor and equipment usage being the major
part of this cost. Small orchards generally omit this
practice, while large operations disk and harrow to
make water usage more efficient.
Pruning is critically important to mature bearing
trees to boost yields and minimize the natural tend-
ency for olives to produce alternately light and heavy
crops. Nonbearing trees are also pruned every other
year to develop good limb structure that can sustain
heavy crops and resist strong winds without limb
breakage. Normal pruning costs about $20 per hec-
tare ($8 per acre), with labor accounting for virtually
all this cost.
Alternative bearing is a major problem for table
olive producers in both Mexico and the United States,
and has a direct impact on profits. In years of bumper
crops, for example, the fruits may be so small at
maturity that they are not suitable for table olives
and are left on the tree for later harvesting as oil
olives.
Fruit thinning in Mexico is normally performed by
hand. However, large orchards usually are spray
thinned (if need be) with the hormone naphthalene-
acetic acid (NAA), which increases the normal im-
mature fruit drop. Thinning by hand is generally
performed from mid-June to early July, while spray-
thinning is done during late May to early June. Hand
thinning costs about $50 per hectare ($20 per acre),
with labor accounting for most of the cost.
Mexico's large-scale growers indicate that thinning
of excessive fruit provides the following benefits;
• Reduces the tendency for alternative bearing;
• Increases average yields over a period of years;
• Produces larger fruit with greater flesh-to-pit
ratio;
• Iircreases the oil content of the fruit;
• Promotes earlier fruit maturity with less olive
shrivel;
• Reduces limb breakage and enlarges the produc-
tion of more fruiting wood for the next season's crop.
Fertilizers are applied in the winter to stimulate
flower development and enhance the fruit set. .A.bout
45 kilograms per hectare (40 lb per acre, or 0.5-1.0 lb
per tree) of nitrogen fertilizers are applied in Decem-
ber or January. If manure is available, it is applied in
the fall. After heavy bearing— when lower yields are
expected for the next crop— nitrogen fertilizers are
often applied in larger volume to offset the alternate-
year bearing characteristic.
Most inorganic fertilizers cost $300-5400 per ton
and are supplied by PEMEX and FERTIMEX (Mexi-
can firms associated with the national Government).
Insect pests and diseases in Mexico are similar— if
not identical— to those that plague olive trees in the
United States. The three major pests are olive scale
(Parlatoria oleae [Colvee]), oleander or ivy scale
{Aspidiotus hederae [Vallot]), and the black scale
{Saissetia oleae [Bern]), which are treated with the
same oil-based insecticide sprays commonly used in
California (i.e., malathion and parathion). Spraying
costs about S50 per hectare (S20 per acre), depending
on the extent of infestation.
The three primary diseases of Mexico's olives are
identical to those of California: Peacock spot (Cj'c/o-
conium oleaginum Cast.), olive knot (Bacterium
savastanoi E.F.S.), and the well-known Verticillium
alboati-um R. and B. Proper pruning and spraying
with fungicides, such as Benlate and Faltan, controls
most of the peacock spot problems; olive knot is
controlled by removing the galls or knots, Verticil-
lium is controlled by uprooting diseased trees and
prohibiting the planting near olive groves of alterna-
tive host plants such as cotton, tomatoes, potatoes,
and other vegetables.
Harvesting
Olives for table use are harvested from mid-
September to mid-November, and olives for oil are
usually harvested 1 or 2 months later, depending on
weather, variety, and needs of the canneries. Harvest-
ing begins when the fruit color changes from dark
green to a light green-straw yellow and the flesh
becomes soft. With bumper crops, growers generally
spot-pick the largest and ripest fruit, then harvest the
remainder as oil olives. Some growers pick over the
olive groves from three to five times, taking only the
larger, mature olives. The small fruit is left until
January, when the oil content reaches its maximum
level; oil content increases sharply from September to
January .
Most large olive grove owners in Sonora sell their
fruit on the tree with the processors providing the
harvest labor. In contrast, the majority of the trees in
Baja California are in small backyard orchards, and
the growers and their families pick and deliver the
olives to the processing plants.
Harvesting is the largest component in the cost of
production for most olive growers. Two to five
workers, skDled in using ladders and picking only the
ripe fruit, are required to harvest the fruit from a
hectare of olive trees. SkUled workers earn about S8
per day, while farm workers garner $6 a day— the
minimum wage. Depending on location and time
involved, the cost of harvesting 1 hectare of olives
varies between SI 00 and S200.
Long-distance hauling of raw fruit to the process-
ing plant is a serious problem for growers in Baja
California because of the rapid deterioration of fruit
quality between the time of harvest and brine storage.
Baja California's mountainous terrain and limited
road system can cause shipping problems, while So-
nora has an adequate road network. The fruit is
shipped to processors immediately after harvesting,
and growers often sustain financial loss if the crop is
not in brine storage within 1 2 hours after being
picked. Some growers and processors have fruit
shipped at night to avoid deterioration from "sweat-
ing" or "heating," while others provide brine storage
close to orchard centers.
Production
The production level of olives in Mexico during
1974-76 was relatively low, averaging only 8,400 tons
annually because of adverse weather conditions. How-
ever, the 1979 crop was up sharply to 14,000 tons, of
which 10,000 tons were harvested in northern Baja
California, 450 tons in the southern part of the state,
and 3,500 tons in Sonora.''
In both Baja California and Sonora, growers garner
about 9 pesos per kilogram (US S395 per ton). In
Sonora, the average orchard yields 8.5 tons per
hectare, valued at $3,400, while in Baja California an
orchard may average 2 tons per hectare, valued at
S800. Although Sonora's groves cost more to main-
tain because of intensive cultural practices, the higher
crop value per hectare compensates for the higher
cost of production.
Processing
There are seven olive processing plants in Baja
California— five producing both fruit and oil and two
producing only oil. Three of the five table-oUve
'The 1978 and 1979 production estimates are not official
statistics from the Mexican government, but are based upon
reports from the trade.
processors are packing Spanish green olives in glass
jars for retail distribution, while the other two sell
olives in bulk to bottling companies for repacking in
retail-size containers.
During recent years, about 20 percent of the
output of Baja California's olive processors has been
in the form of oil and 80 percent as table olives
(finished-product basis). Generally, only one-third to
one-half of Baja California's olive crop is suitable for
fruit production and the rest is crushed for oil.
Although oUve oil is pressed from overripe and cuUed
fruit not suitable for table use, a high-quality, low-
acid virgin cold-pressed oil can be obtained. The best
oil yields range from 17 to 21 percent by weight, but
the average is 15 percent.
Because Sonera's output of olives hds been rela-
tively small, the growers there were entirely depen-
dent on processors in Baja California for a market
outlet until 1978. However, olive growers in the
Caborca area of Sonora have recently formed a
producer group, the Association of Olive Producers of
Caborca, and have established an olive processing
plant to meet their expanding needs. This processing
operation primarily produces brined table olives of
the Spanish green style, while substandard fruit is
crushed for oil.
Of the 1978 Baja California olive crop of 7,000
tons,^ processors produced about 500 tons of oil and
3,000 tons of table olives. In that year, Sonora's crop
was sold to processors in Baja California and included
in their output of finished products. However, start-
ing in 1979, Sonora's crop is being processed pri-
marily in Caborca.
Mexico's green brined table olives are similar tq
California's black table olives, except that the Mexi-
can product is not oxidated to turn black as is the
case in California. The brined olives are processed in
the same manner as the black ripe olives, with similar
cooking times and temperatures, and canned in the
same brine solution. Mexico's green and California's
black brined olives are available whole, pitted, or
stuffed.
Mexico also has a type of Spanish green olive
processed by neutralization, leaching, and fermenta-
tion. Spanish-style olives are prepared from fully
developed (but not ripe, or black) fruit, which is light
green to straw-yeUow in color.
Upon arrival at the processing plant, raw olives are
washed, sorted, and stored temporarily in 5-liter
buckets containing about 30 kilograms (65 pounds)
of fruit and brine solutions. Olives are then taken
from temporary storage and soaked in a curing
solution of sodium or potassium hydroxide (usually
for 4 to 1 2 hours) to remove most of the fruit's bitter
flavor. Lye penetration is carefully observed by fre-
quently cutting fruit to the pit with a knife, with the
depth of penetration indicated by the yellowish-green
color of the lye-treated flesh.
After sufficient lye penetration, the excess caustic
solution is washed and leached from the olives by
several applications of cold water during a 24-to-48-
hour period. The fruit is then placed in 1- or 2-ton
containers (called boteUas in Mexico or bottles in
California), covered with a salt brine solution, and
fermented for a period of from 2 to 1 2 months.
Fermentation takes approximately 2 months in
warm weather and up to 12 months in cool weather.
During the fermentation or curing process, the olives
become firm, salty, and light yellowish green in color
and take on the characteristic flavor and aroma of the
Spanish green olive. When fermentation is complete,
the containers are drained of fluids, completely filled
wdth new brine that includes a preservative, then
sealed and stored until needed. Only a few processors
market olives in the cloudy, used brine, which has a
richer and more subtly complex flavor than the
colorless new brine, because Mexican consumers pre-
fer the clear brine.
Olive processors are beginning to produce
Spanish-style olives that are pitted with equipment
imported from California and stuffed wdth locally
produced minced pimentos and occasionally pearl
onions. Some are also sold pitted but not stuffed.
However, most olives are marketed in the inexpensive
unpitted form.
Presently, Mexico has an annual processing ca-
pacity of 5,000 tons of fruit and 1 ,500 tons of oU. By
1985, processors expect to double these capacities to
10,000 tons of fruit and 3,000 tons of oil. In the late
1980's this processing capacity is expected to reach
15,000 tons of fruit and 5,000 tons of oil. Much of
the expansion is expected to be in specialty table-
olive products.
Processors are undertaking significant moderniza-
tion programs and are also installing new pressing
equipment for oil outturn. Generally, older olive
pressing machines produce 15 tons of oil during a
16-hour cycle, using 4,000 p.s.i. (pounds per square
inch) of pressure. The new equipment turns out
40-50 tons in a 16-hour period, utilizing 15,000 p.s.i.
of pressure.
Although black olives are not produced on a
regular commercial basis in Mexico at the present
time, most processors plan to buy oxidation and
other equipment to produce black olives in the near
future. Several processors expect to be producing
substantial quantities of black table olives in 3-5 years
and marketing them as part of their line of specialty
olive products.
Marketing
Processors market about half of their table olives
as unpitted fruit, vwth the bulk of the remainder sold
pitted and stuffed with pimentos. Some fruit is
marketed pitted, unstuffed. However, because of the
large supply of relatively low-priced locally grown
pimentos, most processors have the pitted olives
stuffed to realize higher sales value for the product.
1. This olive grove near Caborca, Sonora, draws sustenanc
gravity-flow irrigation water.
2. Up to 50 tons of olive oil can be produced in two 8-hou
from presses such as this.
3. Oil olives ready for the press.
4. Table olives in temporary brine solution.
5. Fermentation botellas, each containing 1 to 2 tons of olives.
During fermentation, the brine solution is changed regularly.
6. A moment of rest for a worker at a processing plant.
7. Black olives for oil are examined on arrival at the plant.
8. Workers on a processing line for table olives.
9. Spanish-style table olives and olive oil products at an ejido in
Baja California.
10. Inspecting table olives in fermentation botellas in Sonora.
11. Manzanillo olive trees planted within contour levees in
Sonora.
12. Workers at a Sonora processing plant sorting olives of table-
fruit quality.
Mexico uses California's grades for Spanish-style
olives, which also apply to California-style fruit. Most
are Grade B (or choice), some are Grade A (or fancy),
and a few are Grade C (or standard). Factors deter-
mining grade include color, uniformity of size, ab-
sence of defects, and character— firmness, crispness,
texture, and the condition of the epidural tissue.
Mexico's olives usually are sized as small (1 22-140
olives per pound), medium (105-121 count), or large
(91-104 count), although some are sized as extra large
(76-90 count) and mammoth (65-75 count). Olives
are sized before and after processing so that a uni-
form product can be produced.
Most olive oil is marketed as table (virgin) oil, with
consumers preferring the lighter color grades of low-
acid, cold-pressed oil. Overall acidity and fatty acid
content of the oil varies tremendously from one
location to another and from one year to the next.
Since only affluent Mexicans buy olive oil, they tend
to buy according to brand, rather than price.
Processors in Baja California and Sonora sell most
of their output to wholesalers in central Mexico.
Mexico City, Guadalajara, Tijuana, and Monterrey
are, in descending order of importance, the leading
markets for table olives and olive oil. However,
Mexican processors are exploring the possibilities of
exporting table olives and oil to the United States
through California's olive processors and distributors.
Foreign Trade
The foreign trade sector of Mexico's olive industry
is-despite its relatively small size— important to the
U.S. oUve industry because of its location and rapid
expansion.
Mexico currently exports olives to the U.S. market
on an irregular basis. Annual exports have amounted
to only about 300 tons of table olives, valued at
$50,000 during years of U.S. crop shortfalls.
Until the 1970's, Mexico imported table olives and
olive oil— principally from Spain -to supplement its
domestic production. Recently, however, as olive
output has increased in Sonora and Baja California,
Mexico has become a net exporter of olives.
Nevertheless, Mexico's exports of table fruit and
olive oil are still small relative to overseas shipments
from Spain, Greece, and Italy.
Mexico's olive producers have made some ship-
ments of fresh and unprocessed olives in brine to the
United States, but generally Mexico's raw and brined
table fruit has been purchased by U.S. processors and
distributors only when California's products are in
short supply.
During such times, U.S. processors go to Mexico
and buy olives on the trees or directly from Baja
California processors. However, these shipments prob-
ably will rise sharply as Mexico's olive production
increases and the fruit quahty improves.
Mexico has exported some pitted and stuffed
green olives. Such processed shipments usually en-
counter strong competition from Spain's exports to
the United States.
Nevertheless, as Mexico's table olive quality im-
proves, its location advantage over Spain in shipping
to the United States will probably aid in displacing
some of Spain's olive exports to the United States.
Mexico does not export significant amounts of
olive on, as this commodity normally goes directly to
the expanding domestic market. Sometimes, Mexico
imports oUve oil from Spain to satisfy demand when
domestic production is at low levels. However, Mexi-
co's olive oil output in the future should expand
sharply and some of this additional production may
be channeled into the export market, displacing
European exports to the U.S. market.
Outlook
As olives are one of the few crops that grow well
in the deserts of Sonora and Baja California with little
or no irrigation, production is expected to expand
sharply as growers increase plantings. Mexico's total
olive area and production are expected to double in
the 1980's and triple during the 1990's. Although
limited water supplies will keep average olive yields—
particularly in Baja California— below those of the
United States (where all trees are irrigated fre-
quently), it is this water restriction that will encour-
age Mexico's growers to change from such high-
water-usage crops as grains and cotton to olives.
Solely on the basis of the entry into production of
the present number of nonbearing trees, production
could rise to 25,000 tons by 1985 and more than
50,000 tons by 1990. The expected rise in produc-
tion, combined with the growing investment in pro-
cessing facilities, will result in increasing supplies of
table olives and olive oil in Mexico that are not
expected to be absorbed by the domestic market.
Thus, there will be surplus finished products to be
exported— probably to the United States if U.S. prices
are moderately above Mexico's. Production of table
olives and oO from northwest Mexico will then be in
greater direct competition with California's olive in-
dustry.
Olives: Production, Value, and Utilization, California, 1963-79
Production'
Season
average
price
per ton'
Value
Utilization
Year
Crushed
for oil
Canned
Other'
1 000
Short tons Dollars ,', ,
dollars
57,000 198.00 11,286
1963
7.500 39.100 9.600
1964
1965
54,000 139.00 7,506 6,200 37,500 9,400
50,000 219.00 10,950 4,300 37,800 7,300
1966
63,000 241.00 15,183 4,800 45,500 11,900
1967
14,000 384.00 5,376 1,470 10,230 2,000
1968
86 000 368.00 31648 4,600 62,800 18,000
1969
70,000 329.00 23,030 5,200 51,700 12,500
1970
52,000 247.00 12,844 4,100 39,200 8,100
1971
55,000 148.00 8,140 4,900 39,600 9,800
1972
24,200 415.00 10 043 700 20,000 3,300
1973
70,000 392.00 27,440 4,300 54,300 10,700
1974
58 500 434 00 25 389 3 1 00 46 700 7 800
1975
67,000 336.00 22 512 3 800 53 300 9 000
1976
80,000 330.00 26 400 3 700 65 500 10 200
1977
43,000 403.00 17,329 2,300 32.300 7,800
1978
126 000 303 00 38 178 7 300 99 100 18 800
1979" .
59 000 .398 00 73 482 9 900 59 300 3 400
Production Is the quantity sold or utilized. Quantities processed are priced at the equivalent processing plant door level,
'includes Spanish, Greek, and Sicilian styles, and chopped, minced, brined, and other cures. ''Preliminary.
Economics, Statistics, and Cooperatives Service — Crop Reporting Board. About 40 gallons of oil are obtained from 1 ton of
olives in California. Data for 1944-62 \n Agricultural Statistics, 1972, table 339.
Olives: U.S. Imports, 1974/75-1978/79 (Nov. -Oct.)
(Metric Tons)
Item 1974/75 1975/76 1976/77
Olives, fresh:
Greece — — 11
Mexico — — —
Spain — — —
Other 3 - -
Total 3 - 11
Olives, in brine, excluding ripe and pitted,
green in color, canned:
Greece 1,553 2,035 2,575
Mexico — — —
Spain 2 11 2
Other 38 206 275
Total 1,593 2,252 2,852
Olives, in brine, not ripe:
Greece 423 391 436
Mexico — — —
Spain 4,638 4,975 4,421
Other 89 186 186
Total 5,150 5,552 5,043
Olives, in brine, ripe, not pitted, green in
color, canned:
Greece 189 247 361
Mexico — — —
Spain 18 - 1
Other 51 60 45
Total 258 307 407
Olives, in brine, ripe, not pitted, NES:
Greece 42 58 60
Mexico — — —
Spain 291 417 160
Other 25 49 40
Total 358 524 260
Olives, in brine, pitted:
Greece 7 11 13
Mexico 59 90 -
Spain 2,196 2,091 2,204
Other 41 104 103
Total 2,303 2,296 2,320
Olives, in brine, stuffed:
Greece - 58 28
Mexico 69 4 —
Spain 23,888 29,415 27,167
Other 458 169 172
Total 24,415 29,646 27,367
1977/78
1978/79
1,791
59
103
1,953
6,413
283
9
62
354
20
126
36
182
2,711
149
2,863
6
33,892
77
33,975
13
1
14
1,327
5
173
1,505
576
387
329
224
5,228
3,242
280
186
4,039
303
4
18
325
30
129
47
206
25
4,168
36
4,229
21,879
191
22,072
(Continued)
Olives: U.S. Imports, 1974-75-1978/79 (Nov.-Oct.)-Co/7f//7ued
(Metric Tons)
Item 1974/75 1975/76 1976/77
Olives, dried:
Greece 8 62 5
Mexico — — —
IVlorocco 439 323 589
Spain — — 75
Other - 1 -
Total 447 386 669
Olives, otherwise prepared or preserved,
NSPF:
Greece 264 495 722
Mexico — — —
Spain — — 3
Other 79 117 127
Total 343 612 852
Olives, all categories:
Greece 2,486 3,357 4,211
Mexico 128 94
Morocco 439 323 589
Spain 31 ,033 36,909 34,032
Other 784 892 949
Total 34,870 41,575 39,781
1977/78
1978/79
397
51
5
457
620
18
96
734
46,933
5
576
5
586
935
1
160
1,096
3,297
3,027
337
228
397
576
42,094
29,425
808
816
34,072
— Indicates negligible or none.
Source: U.S. Bureau of the Census.
U.S. Imports of Olive Oil (Edible and Inedible), by Country of Origin,
Annual 1972-77, January/February 1979
(In metric tons)
Country of origin 1972 1973 1974 1975 1976 1977 1978 1979'
Edible:
Argentina
France
Greece
Italy
Portugal
Spain
Tunisia
Turkey
Others
Total^
Inedible:
Portugal
Spain
Other
Total'
Grand totaP 30,594 27,296 24,364 21,634 28.303 24,633 28.087 27,306
' Preliminary. ^ Includes 1,530 tons from Malaysia. 'Totals may not add due to rounding. " Includes 75 tons from France and 58
tons from Turkey. * Includes 14 tons from France and 88 tons from Italy. " Includes 49 tons from Italy. ' Includes 15 tons from
France and 45 tons from Italy.
Source: U.S. Department of Commerce.
0
241
228
112
3
46
115
17
68
328
528
1,140
534
109
141
263
694
377
245
473
510
278
504
611
11,419
9,802
10.389
9,465
12.815
10.559
14.321
14.497
288
305
297
340
242
273
401
389
12,670
13,671
9.079
9.070
13.141
10,391
11.130
10.774
5.279
1,900
2.709
674
738
1,065
1,300
670
-
350
685
0
0
0
0
0
21
222
42
320
268
' 1 ,802
127
25
30,439
27,196
24.202
21 ,594
28.252
24.522
28.038
27,246
48
21
0
0
0
0
0
0
97
80
" 20
33
9
9
0
0
10
0
M42
7
42
M02
M9
"60
155
101
162
40
50
112
49
60
10
Olives: Mexico's Area, Yield, and Production by States, 1960-1979
Area Yield Production
Year Baja California Baja California Baja California
Sonora Mexico' Sonora Mexico' Sonera Mexico'
Norte Sur Norte Sur Norte Sur
Hectares - Kilograms per hectare Tons
3,107
3,000
2,500
600
2,706
7,044
1,140
45
8,407
3,126
3,000
2,301
500
2,708
7,122
1,125
18
8,464
3,378
3,000
2,101
610
2,591
7,248
1,170
25
8,754
3,593
3,000
2,500
514
2,653
7,362
1,810
19
9,532
3,667
3,300
2,201
602
2,771
8,187
1,580
50
10,161
1960 2,000 150 50 2,223 1,050 1,200 500 1,058 2,100 180 25 2,353
1961 2,139 177 66 2,600 1,547 1,215 985 1,420 3,310 215 32 3,691
1962 2,212 190 67 2,708 1,713 1,368 448 1,575 3,790 260 30 4,266
1963 2,970 191 72 2,794 1,294 1,450 417 1,563 3,844 277 30 4,367
1964 2,302 195 82 2,895 3,027 1,503 402 2,612 6,968 293 33 7,562
1960-64 Avg. . 2,325 181 67 2,644 1,721 1,354 448 1,682 4,002 245 30 4,448
1965 2,348 456 75
1966 2,374 489 36
1967 2,416 557 41
1968 2,454 724 37
1969 2,481 718 83
1965-69 Avg. , 2,415 589 54 3,374 3,061 2,317 574 2,686 7,393 1,365 31 9,064
1970 2,495 703 104
1971 2,516 200 141
1972 3,712 200 163
1973 3,691 200 163
1974 4,579 356 180
1970-74 Avg. . 3,403 332 150 4,263 2,416 2,202 1,413 2,272 8,222 731 212 9,685
1975 4,600 570 182
1976 4,813 293 195
1977 4,625 106 262
1978^ 5,000 300 300
1979' 5,000 300 400 6,000 2,000 1,500 8,750 2,333 10,000 450 3,500 14,000
1975-79 Avg. . 4,808 314 268 5,673 1,775 1,019 6,414 1,925 8,534 320 1,719 10,919
' Includes other states. ^ FAS estimates.
Source: Secretaria de Agricultura y Recursos Hodraulicos, Direccion General de Economia Agricola (DGEA, SARH).
3,655
3,100
2,300
700
2,679
7,735
1,617
73
9,790
3,240
3,237
2,000
2,030
2,922
8,144
400
286
9,467
4,479
3,071
2,500
1,450
2,797
1 1 ,400
500
236
12,527
4,449
2,075
2,700
1,740
2,025
7,659
540
284
9,010
5,492
1,341
1,685
1,000
1,389
6,170
600
180
7,631
5,596
1,406
1,035
1,098
1,363
6,470
590
200
7,630
5,570
1,860
573
1,000
1,746
8,952
168
195
9,728
5,299
2,216
2,302
8,782
2,498
10,250
244
2,301
13,236
5,900
1,400
500
8,000
1,695
7,000
150
2,400
1 0,000
11
Olives: Mexico's Grower Prices and Value of Crop, by States, 1960-1979
Grower Prices Value of Crop
Mexican Pesos Per Kilogram U.S. Dollars Per Ton U.S. Dollars
Year
Baia Calif . . Baja Calif . . Baia Calif.
Average <, Average ^
Sonera ., ., Sonora ., . ^, Sonora
M » o Mexico ... _ Mexico m . <,
Norte Sur Norte Sur Norte Sur
Pesos Dollars - • - 1,000 Dollars
1960 2.40 3.00 3.50 2.42 192 240 280 194 403 43 7
1961 2.68 3.40 3.75 2.74 214 272 300 219 708 58 10
1962 2.80 3.00 3.75 2.58 200 240 300 206 758 62 9
1963 2.80 3.50 3.85 2.86 224 280 308 229 861 78 9
1964 2.86 3.62 3.86 2.90 229 290 309 232 1,596 85 10
1960-64 Avg. .. 2.70 3.30 3.74 2.70 212 264 299 216 865 65 9
1965 2.90 3.70 3.70 3.02 232 296 296 242 1,634 337 133
1966 2.92 3.00 3.85 2.93 234 240 308 234 1,667 270 55
1967 2.60 2.70 3.50 2.63 208 216 280 210 1,508 253 70
1968 2.60 2.75 3.55 2.64 208 220 284 211 1,531 398 54
1969 3.00 3.50 3.87 3.08 240 280 310 246 1.965 422 15
1965-69 Avg. .. 2.80 3.13 3.69 2.86 224 250 296 229 1,661 336 65
1970 2.80 3.50 4.00 2.93 224 280 320 234 1,733 453 23
1971 3.00 3.50 4.05 3.07 240 280 324 246 1,955 112 93
1972 3.09 2.50 4.45 3.15 247 200 356 252 2,816 100 84
1973 3.25 3.00 4.70 3.33 260 240 376 266 1,991 130 107
1974 3.80 5.00 12.00 4.62 304 400 960 370 1,876 240 173
1970-74 Avg. .. 3.19 3.50 5.84 3.42 255 280 467 274 2,074 207 96
1975 3.80 8.00 6.30 4.27 304 640 504 342 1,967 378 101
1976 6.50 7.94 6.30 6.49 286 350 278 286 2,560 59 54
1977 6.50 10.00 5.06 6.28 286 441 223 277 2,932 108 513
1978^ 8.00 9.00 8.00 7.80 352 396 352 344 2,464 59 845
1979' 9.00 9.00 9.00 9.00 395 395 395 395 4,000 200 1,400
1975-79 Avg. .. 6.76 8.79 6.93 6.77 325 444 350 329 2,785 161 583
NOTE: One U.S. dollar equalled 12.5 pesos prior to 1977, 22.7 pesos from 1977 through 1978, and 22.8 in 1979.
' Includes other states. ' FAS estimates.
Source: Secretaria de Agricultura y Recursos Hidraulicos, Direccion General de Economia Agrlcoia (DGEA, SARH).
Total
Mexico'
456
808
879
1,000
1,754
979
2,034
1,981
1,838
2,011
2,500
2,073
2,291
2,329
3,157
2,397
2,823
2,599
2,609
2,782
3,666
3,440
5,500
3,599
i:
Table Olives: World Production, Crop Years 1974/75-1978/79
(In 1,000 metric tons)
Area and country 1974/75 1975/76 ^Q^Qm
North America
Mexico 7.2 7.6 7.4
United States 49.4 58.1 68.0
Total 56.6 65.7 75.4
South America
Argentina 22.5 29.0 25.0
Brazil 1.0 1.0 1.0
Chile 4.0 4.0 3.0
Peru 10.5 10.5 10.0
Total 38.0 44.5 39.0
Europe
Cyprus .7 3.0 1.0
France 2.4 2.4 2.9
Greece 67.3 95.7 54.1
Italy 76.4 80.0 45.0
Portugal 18.2 17.3 17.1
Spain 93.0 142.0 177.4
Turkey 145.0 118.0 150.0
Yugoslavia .2 .7 .6
Total 403.2 459.1 448.1
Middle East
Israel 15.0 3.5 14.5
Jordan 6.7 10.0 19.0
Lebanon 10.0 5.0 5.0
Syria 38.3 23.7 25.0
Total 70.0 42.2 63.5
Africa
Algeria 5.2 10.4 .8.0
Egypt 6.0 8.0 8.0
Libya .9 2.0 1.8
Morocco 35.2 32.4 54.8
Tunisia 5.2 7.5 8.0
Total 52.5 60.3 80.6
Other 9.3 9.1 9.4
Grand total 629.6 680.9 716.0
' Preliminary.
Source: International Olive Oil Council, Madrid, and the Foreign Agricultural Service, USDA.
1977/78
1978/79'
8.5
50.0
58.5
45.2
442.3
39.3
73.8
10.2
669.3
8.9
55.0
63.9
29.0
32.0
1.0
1.5
3.5
4.0
11.7
12.0
49.5
2.0
1.8
2.4
2.0
69.0
83.0
91.0
75.0
20.2
21.0
164.0
183.0
93.0
160.0
.7
.8
526.6
4.8
16.0
5.5
8.0
5.0
6.0
24.0
25.0
55.0
4.0
8.0
8.0
6.5
1.5
1.5
50.3
56.6
10.0
8.0
80.6
9.8
785.4
13
Table Olives: World Exports, Marketing Years 1974/75-1978/79
(In 1,000 metric tons)
Years beginning Nov. 1
Area and country
1974/75 1975/76 1976/77
North America
Mexico — — —
United States 1.7 1.6 1.6
Total 1.7 1.6 1.6
South America
Argentina 11.9 21.5 14.6
Brazil - - -
Chile .5 .5 -
Peru — — —
Total 12.4 22.0 14.6
Europe
Cyprus — .1 .1
France' 2.4 2.5 3.0
Greece 29.9 33.6 38.0
Italy .7 .5 .5
Portugal 2.3 2.1 3.2
Spain 55.9 83.1 65.5
Turkey .7 .8 5.0
Yugoslavia — — —
Total 91.9 122.7 115.3
Middle East
Israel .5 — .1
Jordan 1.2 — 1.0
Lebanon * .1 — —
Syria 9.0 - -
Total 10.8 - 1.1
Africa
Algeria 3.5 5.4 5.0
Egypt - - -
Libya — — —
Morocco 18.9 24.5 48.3
Tunisia .7 .8 2.0
Total 23.1 30.7 55.3
Other .3 .3 .4
Grand total 140.2 177.3 188.3
— Indicates negligible or none.
' Forecast. ' Most exports represent transhipments.
Source: International Olive Oil Council, Madrid, and the Foreign Agricultural Service, USDA.
1977/78
1978/79'
3.0
3.0
16.0
16.0
128.7
36.2
.6
37.6
.3
186.0
3.0
3.0
17.0
17.0
.1
.2
2.5
3.4
39.5
45.5
1.1
1.0
2.5
2.5
80.0
85.0
3.0
10.0
147.6
1.8
1.8
4.2
34.0
1.0
39.2
.3
208.9
« U. S. GOVERNMENT PRINTING OFFICE : 1980— 310-947/GPA-4211
14
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